RR Shramik aims to be among top 3 in copper tube biz; invests Rs. 350 Cr
RR Shramik, a part of USD 1.25 Billion conglomerate RR Global, is a leading manufacturer and supplier of superior winding wires, essential components utilized across a spectrum of electrical equipment including transformers, cables, transmission lines, switchgear, capacitors, and more. The company also delivers superior quality seamless copper tubes for air-conditioning industry.
In this interview, Sumeet Kabra and Hitesh Vaghela, two dynamic leaders from RR Shramik, delve into the company’s aspirations and innovations in the electrical equipment industry.
What is the journey of RR Shramik’s copper tube division?
Sumeet Kabra: Our journey has been tremendously exciting. Since partnering with Global Copper in 2017, our initial seeds of investment have flourished into substantial growth. We are thrilled to unveil our ambitious plans for this segment, which hold great promise. As always, at RR, we are committed to achieving top-three status in India across all our ventures, and now, we are setting our sights on global recognition.
What is the Investment and Capacity of Your Built Infrastructure?
Hitesh Vaghela: Currently, our operations are centered in Gujarat, specifically in Baroda, with a plant boasting a capacity of 7,000 tons per annum. Notably, we are the sole producer of LWC in India. To further solidify our position and achieve our goal of being a top-three contender in the copper industry, we have strategically invested in Bhiwadi, Rajasthan. This upcoming facility will have a capacity of around 30,000 tons per annum. With this combined capacity, we are confident in securing our spot among the industry leaders. The phased investment plan for Bhiwadi involves approximately 200 crores for phase one and an additional 150 crores for phase two, totaling an estimated investment of 300 to 350 crores in the Bhiwadi region.
Who is the end-user industry?
Sumeet Kabra: Our customers include HVAC consultants, air conditioner manufacturers, chillers, and heat exchanger producers. With global temperatures rising due to climate change, the demand for air conditioning is steadily increasing. Over the past five years, the air conditioning industry has shown consistent growth, indicating a promising future. Additionally, end consumers purchasing air conditioners indirectly benefit from our copper tube supply chain to air conditioning suppliers.
How does RR Shramik Copper Tube division complement RR Global, especially with RR Kables’ established brand?
Hitesh Vaghela: We have embraced advanced technology at RR, both presently and in our future plans. Our focus remains on state-of-the-art methods like the Cast and Roll technology, renowned globally for its efficiency. With an impressive yield of 96%, it’s the premier choice for crafting high-quality copper tubes.
Sumeet Kabra: RR Kabel is a trusted brand synonymous with quality copper products in consumers’ minds. We uphold this legacy in RR Shramik’s Copper Tube division, where top-tier customers are already part of our portfolio.
What global markets are we targeting to meet our investment goals and achieve top-three status?
Hitesh Vaghela: We aim to expand our exports to key markets including the USA, Europe, and the Gulf region. We are actively seeking strategic distribution channels in these countries. In India, our Baroda plant is already approved by major multinational corporations such as Daikin, Panasonic, Hitachi, and Mitsubishi. Additionally, we are gearing up to meet international demand by supplying our products globally.
Do you possess the necessary certifications and standards required for global expansion?
Sumeet Kabra: We are obtaining certifications and expanding into the Middle East, with plans for the USA and Canada markets.
What is the vision for RR Shramik’s Copper Tube division?
Sumeet Kabra: This marks our initial investment on a significant scale in this segment. Given the rapid growth of the industry, we anticipate planning another substantial investment within 3 to 4 years.
Hitesh Vaghela: In addition to our systematic approach, government incentives, including the recently launched PLI for air conditioning and refrigeration businesses, are proving supportive. Following the Bhiwadi project, we are considering further investments in the southern region. However, this will be planned after the initial project kick-off, as it marks our first step in this direction.
Watch this engaging interview now!
